Winning The Competitive Battle In E-Commerce
Every definitive guide is driven by a big idea. After a ton of research, building on our own experience, and speaking with our own customers, here’s ours:
“If Customer Service is the New Battleground, then Conversation is where it will be won.”
In this post you will find all the research data – logically structured in two pyramids – to proof that personal, real-time Conversations will win the Customer Service battle in E-Commerce.
Customer service is the new battleground
Although more shoppers are moving online, the E-Commerce space is also becoming more competitive. There’s a flood of new E-Commerce players looking to steal your hard-won customers in apparel, home goods, beauty, accessories, electronics, food and drink. Only the fittest will survive. And customer service is the new battleground. Why?
Bigger brands are upping the game in terms of customer service – the very place where you as a smaller brand used to have a clear advantage.
With the big increase in product and brand choice, the full customer experience is swiftly becoming the differentiator in consumer decisions and yet only 1% feel their expectations are always met.
91% of customers will stop doing business with you following a bad customer service experience.
Online stores with poor customer service grades have lower conversion and are costly to run thus undercutting brand values too..
45% of US consumers will abandon an online transaction if their questions or concerns are not addressed quickly.
A customer is 4 times more likely to buy from a competitor if their problem is service related rather than price or product related.
All the stats tell us good customer service means online success, but as you’ve probably realized through your own store’s experience, it just doesn’t happen that way. You need to develop a great customer service model first. It should be your top priority.
Conversation will win the competitive battle
By conversation, we mean ‘real-time’ service interactions that are both personalized and super-effective. Even though phone conversations are also real-time, we’re focusing on live chat.
Why? Well, if you have the right foundation in place, then for smaller online stores, live chat can become your single biggest competitive advantage. Here’s why:
Your competitors are looking the other way!
Less than 60% of the Top 500 E-Commerce stores offer live chat — which opens up a clear competitive advantage for you as a smaller store.
More consumers are demanding (and are happiest with) live chat
In 2012 65% of US shoppers used live chat in (up from 58% in 2011) and that figure is set to grow.
At an average 1 minute 10 seconds, live chat offers the lowest response time of all channels.
Live chat has the highest satisfaction scores for any customer service channel, with 73%, compared with 61% for email and 44% for phone.
88% of all customers want their problem solved in one single interaction, and live conversation is the easiest way to deliver that.
It helps generate a more profitable web store
It offers insight into your product, brand and site improvements
It helps you quicker optimise your product range and identify new add-ons, cross and up-sell opportunities
It helps you better understand your brand differentiator.
It helps you make web store improvements that your customers are looking for.
It helps you better deliver on your brand promise.
As a web store service team, your brand is the biggest competitive advantage — even over your product! And putting a personal, emotional, helpful human face on your brand is something that larger brands will never do as well as you.
So, when you do it well, real-time conversation in your web store can help you win the battle for today’s consumers, keep you ahead of the competition, and even help turn your customer service operation from a cost to a profit centre.
And that’s what the ROBIN guide to great conversation will help you do.
As we’ve shown, if you want to be competitive today, a great customer service model is a must. It’s first and foremost in a strategy to win on the battleground of customer service.
If you want to beat the competition as a small web store, great conversation can give you that edge — and live chat is the way forward!